Spartan Resources reported a near doubling of losses in the half-year ending December, reaching $44.4 million compared to $26.2 million in the previous year. This increase is primarily attributed to higher royalty expenses and a substantial $25 million investment in exploration activities. A significant factor contributing to the widened losses was a $15.9 million revaluation of a future royalty obligation, stemming from an increased mineral resource estimate at the company’s Dalgaranga gold project. Additionally, an impairment expense of $14.2 million further impacted the company’s profitability.
The company’s financial statements also revealed cash outflows of $5 million from operations. Investment activities led to cash outflows of $25 million, a significant portion of which, $14.5 million, was allocated to the Never Never and Pepper Gold deposits. These investments reflect Spartan Resources’ commitment to expanding its gold exploration efforts despite the short-term impact on its financial performance. The company’s strategic focus remains on developing its gold projects and increasing its mineral resource base.